Six Sigma is a data driven approach
It is an easily appreciable fact that decisions should be taken based on data (to the extent possible) and should not be based on the gut feel or judgment. Six Sigma provides us with information on which and what type of data should be collected, how it should be collected and how it should be analyzed. Example - In a bank, the number of employees was increased based on the gut feeling of the senior management, while the biggest competitor of this bank analyzed the trends of work flow for future projects through simulation and created flexi-profiles to reach very high service levels while maintaining the same manpower count.
Six Sigma is a process focused methodology
Everything that you do at the workplace has a process behind it. For bringing improvements it is always good to study the underlying process along with the results, especially if we are looking for a long lasting improvement and not a temporary quick-fix solution.
As Deming said - 85% of the problems are due to system and process deficiencies and not due to human errors. Behind most human errors is a weak process. Example - The chances of wrong module being integrated in a software development can not be eliminated by just a reward or punishment mechanism.
Six Sigma provides a structured step by step roadmap
If a business problem is being resolved by a cross functional team over a period of time, it pays to utilize a structured methodology (like Define-Measure-Analyze-Improve-Control) with review stages. Example - If a company wants to reduce the TAT for a maintenance process, the situation is best addressed by following a structured methodology where all problem solving team members stay focused and can see visible progress.
Six Sigma uses non common-sense approaches
If common sense approaches were sufficient, there would not have been any chronic (repetitive) business problems at all. Example - To improve customer satisfaction index by 25% in 4 months time, you would need not one but a series of non-common sense approaches which Six Sigma provides
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Six Sigma integrates the best of tried and tested management methodologies over the years.
Six Sigma has weaved various time tested management techniques in one roadmap. Also, Six Sigma is not rigid. It is an evolving methodology. New tools are being added to the Six Sigma toolkit by innovative practitioners. Recently, in a Benchmark Six Sigma Conference, speakers from Wipro, Infosys, Patni, Kanbay, Accenture, TCS, showed how Six Sigma methodology are being applied innovatively in their organisations.
Six Sigma improvement projects are mostly validated by financial benefits or by impact on a KPI (Key Performance Indicator).
Whatever improvements we bring at the workplace must show in business results. People who make this possible are important resource in any organization. Example - A Six Sigma Green Belt who was successful in 5 out of 5 projects got excellent recognition in a company. (More and more companies are now linking employee and team growth with efficiency or cost measures).
Six Sigma works on improvements on a project by project basis by people trained as improvement experts (called Green Belts and Black Belts)
Improvements can be brought on a project by project basis and by no other way. Unless improvement areas are converted into projects, with assigned responsibilities and authorities to correctly trained people, the problems remain what they are. Example - In one manufacturing company certified as ISO 9001, long customer wait times for repairs during warranty were identified as an improvement area during each internal audit, but no one was trained on techniques to bring improvements (and the issue was not converted into a project with accountability). When this company started practicing Six Sigma, the same improvement areas could be carried out with meaningful ROI from each improvement project.
In organizations of any size or complexity, Six Sigma methodology poses the following questions repeatedly.
1. Are we working at the best possible performance levels for our key processes?
2. If the answer is yes, is it feasible to explore new processes that can set new benchmarks and give our company a bigger competitive advantage?
3. If the answer is no, what is it that is stopping us from forming and supporting a team that can enhance the performance level in a manner that makes business sense.
The age-old algebraic equation says it all: Y = f (X). If Y is the effect and the Xs are the causes, then putting all the focus on the Y or guessing which X is most significant are both bad ideas.
One thing Six Sigma helps with is understanding these relationships statistically so work can be directed at the cause or combination of causes (Xs) most likely to change the effect (Y). This activity helps break the endless string of firefighting brought on by never really getting to the root cause of any effect.
This equation is at the heart of the Six Sigma methodology and with the DMAIC andDMADV roadmaps drives a company through a logical, sequential process to efficiently find the significant Xs and act on them. This gives the highest probability of success and helps turn the tide of reactive behavior.
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